2025-07-01 16:23

US judge orders Argentina to relinquish 51% stake in YPF Argentina government says will appeal ruling YPF leads development of major Vaca Muerta shale region Argentina pushing shale production to bring in exports dollars Legal standoff could hit aims to return to global markets BUENOS AIRES, July 1 (Reuters) - A dramatic ruling by a U.S. court ordering Argentina to hand over the 51% stake it holds in state energy firm YPF (YPFDm.BA) , opens new tab has cast a shadow over the country's plans for its huge Vaca Muerta shale formation and hopes to return to global markets. U.S. District Judge Loretta Preska said on Monday that Argentina must transfer its YPF shares within 14 days to partially satisfy an earlier $16.1 billion court judgment against the country over its 2012 nationalization of the firm. Sign up here. The government of pro-market libertarian Javier Milei said it would appeal the ruling to "defend national interests." The judgment adds uncertainty to Argentina's plans to turn Vaca Muerta, the world's No. 2 shale gas reserve and No. 4 for shale oil, into a key global energy-producing region that would help bring in foreign currency needed to prop up the economy. YPF leads development of Vaca Muerta, often partnering with other local and international firms including Shell (SHEL.L) , opens new tab and Chevron (CVX.N) , opens new tab. Vaca Muerta has hit production of over 400,000 barrels per day of oil and some 70 million cubic meters of gas per day. "Control of YPF is important for Milei; that's why an appeal is the only option for him," said Marcelo Garcia, director for the Americas at New York-based risk consultancy Horizon Engage. "It should bring in the U.S. dollars the economy lacks." The legal dispute arose from Argentina's 2012 seizure of the 51% YPF stake held by Spain's Repsol (REP.MC) , opens new tab, without tendering for shares held by minority investors Petersen Energia Inversora and Eton Park Capital Management. In 2023, Preska awarded $14.4 billion to Petersen and $1.7 billion to Eton Park in the same case, which Argentina is also appealing. The plaintiffs are represented by litigation funder Burford Capital (BURF.L) , opens new tab, which expects to receive some 35% and 73% of Petersen's and Eton Park's respective damages. LEVERAGE TO NEGOTIATE The legal ruling could also dent Argentina's ability to tap global markets, something the country is keen to do to bolster its depleted reserves after years of currency crises, regular fiscal deficits draining state coffers and high inflation. "These unresolved disputes could hinder, or even block, Argentina's return to the international capital markets," BancTrust & Co said in a note on Tuesday. Argentine economist Agustin Monteverde said the uncertainty could also limit YPF's own fundraising and strategic planning. "A firm whose majority shareholder is unclear is in the midst of a crisis; it's difficult to make decisions," he said. Analysts and officials pointed out that surrendering the shares in YPF would constitutionally need the approval of Argentina's Congress, which was unlikely to happen. A more realistic outcome was that it would force Milei to negotiate. "I find it unthinkable that a vulture fund would take over 51% of YPF's shares," said Victor Bronstein, director of the Center for Energy, Politics, and Social Studies and a professor at the University of Buenos Aires. "This ruling allows them to negotiate, because I don't really think they are interested in being YPF shareholders." Argentina's government must urgently build up foreign currency reserves to pay its debts and meet targets as part of a $20 billion loan program agreed with the International Monetary Fund in April, the indebted country's 23rd IMF program. YPF's U.S.-listed shares slumped more than 5% on Monday, while Burford's stock price jumped. Both steadied on Tuesday. YPF's current market capitalization is around $12.5 billion. https://www.reuters.com/business/energy/ypf-turnover-ruling-casts-shadow-over-argentina-shale-hopes-fx-2025-07-01/

2025-07-01 16:07

Dollar accounts for 58% of global reserves vs 20% for euro Any switch to euro won't be quick, would need reforms: Legarde No major shift away from dollar at moment, BoE's Bailey says SINTRA, Portugal, July 1 (Reuters) - There is no prospect of a major challenge to the dollar's status as the world's reserve currency of choice any time soon, central bankers gathered for an annual conference in the Portuguese resort of Sintra said on Tuesday. U.S. President Donald Trump's unpredictable economic, trade and security policies have spurred questions over whether the U.S. currency, which accounts for 58% of the world's reserves, can remain at the centre of the global monetary system. Sign up here. European Central Bank President Christine Lagarde, who has argued the euro could over time become an alternative to the dollar if Europe's currency zone enacted necessary reforms, said 2025 could in future be viewed as "pivotal" in this respect. "(But) for a major change to occur it will take a lot of time and a lot of effort," she told a panel with her U.S., British, Japanese and Korean counterparts. She noted that "investors are looking at options" in a climate characterised by uncertainty and unpredictability and that there was evidence that the euro was benefiting from that. "It's not going to happen just like that overnight. It never did historically," she said. "But there is clearly something that has been broken. Whether it is fixable, or whether it is going to continue to be broken - I think the jury's out." Bank of Japan Governor Kazuo Ueda also noted that any significant change would depend on structural reforms. "It's to a certain extent up to what areas like Europe or China will do in terms of improving the efficiency or convenience of their currencies," he said, citing as an example the efforts at capital market integration in the euro zone. Bank of England Governor Andrew Bailey said any change to the dollar's status was a long way off. "I don't see ... a sort of a major shift at the moment," he said, arguing that any reserve currency had to offer a supply of safe assets into the market that can be used for purposes of collateral and security. Bank of Korea Governor Rhee Chang-yong said the prospect of a long-term shift of the dollar sentiment was a subject of discussion for some even as they retained their dollar holdings. "It looks like people are talking about it. But at this moment they keep the dollar share while increasing their hedging ratio," he told the panel. Lagarde told a recent audience in Berlin that there was an opening for a "global euro moment", if it earned it. She said Europe would need to build a deeper, more liquid capital market, bolster its legal foundations and underpin its commitment to open trade with security capabilities. While the dollar's current share of international reserves is the lowest it has been in decades, its 58% tally is still well above the euro's 20% share. https://www.reuters.com/business/finance/challenge-dollar-supremacy-long-way-off-central-bankers-say-2025-07-01/

2025-07-01 15:35

LONDON, July 1 (Reuters) - Billionaire investor Cliff Asness's AQR Capital Management finished the first half of the year with positive returns in several of its funds, said a source on Tuesday. The $142 billion hedge fund returned a positive 0.9% performance in June in its multi-strategy fund, Apex Strategy, with a net 11.4% return so far this year, the source with knowledge of the matter said. Sign up here. AQR's Helix Strategy which trades equity trends posted an 0.4% return for June and is up 7.4% for the year through June. But the hedge fund's AQR Delphi Long-Short Equity Strategy June performance declined 2.1% in June, still leaving it with a positive 11.6% half-year return. https://www.reuters.com/business/aqr-capital-management-reaches-mid-year-with-double-digit-returns-source-says-2025-07-01/

2025-07-01 15:15

Initiative would allow debt suspension during crises Supported by Spain, Canada, France and Britain Spain's foreign minister suggests clauses could also cover war SEVILLE, Spain, July 1 (Reuters) - A number of wealthy creditor nations and multilateral lenders have launched an initiative that aims to give sovereign borrowers breathing space on debt payments in the event of a climate or humanitarian crisis, Spain said on Tuesday. The Debt Suspension Clause Alliance was launched during a U.N. conference in Seville - a once in a decade meeting aimed at furthering development finance goals and guidelines. Sign up here. The initiative pushes for the systematic inclusion of clauses in new public and commercial lending that allow for a temporary suspension of debt payments in the face of extraordinary events, such as natural disasters, food crises or health emergencies. "The logic behind these clauses is simple but powerful: to create immediate fiscal space in times of greatest need, allowing countries to focus their resources on response and recovery without risking their solvency or ability to meet social spending," said economy minister Carlos Cuerpo. Speaking on the sidelines of the conference, Spain's Foreign Minister Jose Manuel Albares told Reuters that the suspension clause for debt repayments could also cover war. The governments of Canada, France and Britain were among the co-leaders of the initiative together with multilateral banks, including the Inter-American Development Bank, the European Investment Bank, the African Development Bank, the Development Bank of Latin America and the Caribbean and the Asian Development Bank. Deutsche Bank has become the first private institution to join the initiative, Cuerpo later told a press conference in Seville, without giving details on what this would mean in practice for Germany's largest bank. "What we want is to... advance in standardizing the different concepts within these clauses, expand their application, and also be able to broaden their ability to open up more fiscal space when it would be needed going forward," Cuerpo said. Deutsche Bank declined to provide additional details. A number of multilateral lenders have already added such clauses in their lending - including inserting them retroactively in some existing loans. The Inter-American Development Bank said in the statement on Tuesday that adding climate-resilient debt clauses in sovereign loans had extended $3.2 billion in protection across several countries. It said it would expand this to more nations and broaden its scope. The European Investment Bank last year made climate-resilient debt clauses available to 70 developing countries. The World Bank - one of the biggest multilateral development lenders - has also broadened the scope of its Climate Resilient Debt Clauses for the most vulnerable countries in recent years. https://www.reuters.com/business/finance/governments-multilateral-lenders-launch-push-debt-payment-pauses-2025-07-01/

2025-07-01 14:22

July 1 (Reuters) - Peruvian monthly consumer prices increased in June, resuming their upward trend after falling the previous month, according to data published on Tuesday by the national statistics agency INEI. June's inflation was 0.13% month-on-month, slightly above the 0.11% rate forecast by analysts polled by Reuters. In comparison, consumer prices fell 0.06% in May. Sign up here. Inflation in the 12 months through June stood at 1.69%, flat from the rate registered for the year through May. The rate remains within the lower half of the Peruvian central bank's target range of 1% to 3%. Prices in the world's third-largest copper producer saw the biggest growth nationally among alcoholic beverages and tobacco prices, which ticked up 0.39%, followed by a 0.24% increase in the cost of food and non-alcoholic beverages. https://www.reuters.com/world/americas/peru-consumer-prices-resume-upward-path-june-2025-07-01/

2025-07-01 13:24

RIO DE JANEIRO, July 1 (Reuters) - Brazil's state development bank BNDES [RIC:RIC:BNDES.UL] is considering creating an investment fund focused on AI and data centers, planning executive Nelson Barbosa said on Tuesday. The fund, which would be part of a broader BNDES initiative to resume investments in equities, could receive an allocation ranging from 500 million reais to 1 billion reais ($91.93-183.86 million), he added. Sign up here. ($1 = 5.4390 reais) https://www.reuters.com/world/americas/brazil-state-development-bank-mulls-ai-data-center-focused-investment-fund-2025-07-01/